Online Reporter
Business Reporter
Propertybook founder and managing director Mr Mark Conway says a significant wealth gap in Zimbabwe is driving a “two-speed” property market where a few are pushing up prices, while others struggle with decreasing disposable income.
This has led to a major disconnect between soaring property values and stagnating rental returns. This is making property a “store of value” rather than a source of income.
Speaking to ZiProperty, Mr Conway highlighted that the current market is being driven by “certain pockets of individuals” rather than the middle or working class buying their first homes.
“The inequality gap has grown significantly in the last few years in Zimbabwe,” he explained. “There are a lot of people making a lot of money (in sectors like farming and gold) and there’s a lot of the working class who are struggling to make ends meet,” he said.
This influx of capital from booming sectors is funnelled into property for several reasons. Firstly, it has become difficult to move large sums of money offshore. Secondly, investors have lost trust in the local stock market. As a result, this money is chasing a limited supply of properties, particularly in prominent suburbs like Highlands.“A $200 000 piece of land is now worth $400 000, $500 000 because there’s opportunity,” Mr Conway said.
Rental returns suffer as prices rise
This high-demand, high-price environment is creating a major paradox in the market. While property values are doubling, the disposable income of the middle-class tenants who would rent these properties is decreasing. This imbalance means the rental returns for investors are dropping dramatically.
Mr Conway gave an example of a four-bedroom home in Highlands that might be worth $600 000, but could only be rented for around $2 000 a month.
“You’re getting a 4 percent return,” he noted, adding that after paying council fees and management costs, returns could drop even lower.
“It’s not a great place to put your money hoping for a return. You’re putting your money into property as a store of value,” he advised.
This shift in motivation from income to asset preservation highlights the unique dynamics of the Zimbabwean market.
A limited market with few alternatives
Mr Conway says, despite the high prices and low returns, investors have few other options. With global financial markets facing their own challenges, and the local stock market perceived as a high-risk gamble, property remains the most trusted asset.
“Yes, you might be buying a house that seems too expensive, but you know, in 10 years’ time, you still have a house,” he stated.
Mr Conway concluded by saying that, with no end in sight for the current drivers of the market, this trend is likely to continue.
While there is a risk of a price correction, a “bubble” is unlikely to burst, as the market is not backed by debt or mortgages that would force fire sales in a downturn.
This article first appeared in ZiProperty, a newsletter under the Zimpapers stable. Find more property on the following link: https://www.heraldonline.co.zw/wp-content/uploads/2025/09/ziproperty-magazine_compressed.pdf
